Multibagger in just 1 year & FIIs bought fresh stake: This mining equipment company bags new order worth Rs 33.11 crore from The Singareni Collieries Company Ltd

Kiran Shroff
/ Categories: Trending, Multibaggers
Multibagger in just 1 year & FIIs bought fresh stake: This mining equipment company bags new order worth Rs 33.11 crore from The Singareni Collieries Company Ltd

In March 2024, FIIs bought a 0.20 per cent stake in the company compared to Nil shareholding in March 2023.

Today, shares of Eimco Elecon (India) Ltd hit a 5 per cent upper circuit to Rs 2,147.35 per share from its previous closing of Rs 2,045.10. The stock’s 52-week high is Rs 2,414 and its 52-week low is Rs 580.20.

Eimco Elecon (India) Ltd has secured an order worth Rs 33.11 crore (excluding GST) from The Singareni Collieries Company Limited for the domestic manufacturing and supply of coal mining equipment. The staggered deliveries are expected to be completed by February 28th, 2025. It is important to note that neither the promoter group nor any affiliated companies have any stake in Singareni Collieries, and this order is considered unrelated to any previous contracts.

Eimco Elecon (India) Limited, founded in 1974, is a Gujarat-based manufacturer of equipment for underground and opencast mines. Pioneering intermediate technologies like side dump loaders in India, they primarily focus on underground coal mining machinery (nearly 90 per cent of revenue) including loaders, dump trucks, and drills. They recently launched new loaders meeting the latest emission norms and introduced piling rigs under a "Make in India" initiative. Their manufacturing is located in Vallabh Vidyanagar, Gujarat, and while currently heavily reliant on Coal India Ltd for revenue (around 60 per cent), they're exploring export opportunities for construction equipment in Southeast Asia and Africa.

Also Read: Stock surge over 9 per cent & 2 times spurt in volume: Heavy buying witnessed in this fertilisers & agrochemicals stock under Rs 70; do you own it? 

The company has a market cap of over Rs 1,200 crore with a 3-year stock price CAGR of 75 per cent. In its Quarterly Results (Q4FY24) and annual results (FY24), the company reported amazing numbers and was almost debt-free as of March 2024 i.e., Rs 41 lakh only. In March 2024, FIIs bought a 0.20 per cent stake in the company compared to Nil shareholding in March 2023. The stock gave multibagger returns of 245 per cent in just 1 year and a whopping 475 per cent in 3 years. Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice. 

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